ED raids over 15 locations in Bengaluru in ₹100 crore cooperative bank fraud case

The searches are being carried out at the premises linked to the banks' promoters, and his family members.

Published on: Jul 17, 2025, 14:54:54 IST

By HT News Desk

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The Enforcement Directorate (ED) on Wednesday carried out searches at over 15 locations in and around Bengaluru in connection with a multi-crore cheating case involving three cooperative banks: Shushruti Souharda Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank, news agency ANI reported.

The accused lured depositors with promises of unusually high interest returns. (HT_PRINT)

The raids targeted premises linked to the banks’ promoters and their family members, officials familiar with the investigation told ANI.

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According to the ED, more than ₹100 crore was allegedly swindled from over 15,000 depositors who were lured with the promise of unusually high interest rates. Investigators say the accused used these deposits to extend unsecured loans to close associates, many of which later turned into non-performing assets (NPAs).

The ED suspects that the funds were laundered and used to purchase real estate, constituting a clear violation of the Prevention of Money Laundering Act (PMLA), 2002.

Searches, which began early Wednesday morning, were conducted by ED’s Karnataka wing. Officials revealed that over 20 high-value properties, previously undetected by the Karnataka Police's Investigation and Detection Establishment (KPIDE), were discovered during the ongoing operation.

The ED is currently probing the scale of financial irregularities and tracing assets acquired through laundered funds. The investigation is underway to determine the full extent of the fraud and establish the money trail under provisions of the PMLA.

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HT News Desk
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